Today I bought 3 damsels. 1 domino, 1 yellow tailed, and 1 striped. They are now acclimating and the striped is laying on his side in the bag and breathing quite a bit. Is this normal or is he just going to pass on when i let him into my tank?

It happens. A lot of the fish have probably traveled very far in poor conditions. Did you call your LFS to see if they would replace it? same thing happened to me with a pajama cardinal the other day, died during acclimation. The replacement is doing great thought thankfully.